HDFC Ltd 3 best indicators you cannot miss!

bollinger bands hdfc bank nifty Aug 05, 2021
nifty , bollinger bands

Nifty is at life time high and we can see stock specific buying in index heavy weights. Which is the best stock to buy in such a scenario?

Let us take a look at one stock based on our analysis.

HDFC daily chart (5th August 2021)

HDFC is one of the index heavy weights. This stock had been consolidating since March 2021 and recently broke out of the trading range. We can see an accumulation pattern in a rectangular range from March 2021-July 2021 for 5 months! The stock broke out of the trading range on 4th August 2021. This breakout can be confirmed since price closed above the upper Bollinger Band along with strong rising volume on the breakout candle. Just before the breakout we can also see that the Bands had tightly squeezed which is another powerful trade setup indicating expansion of volatility over the short to medium term.

Another clear indication of a bullish breakout is given by the shift in the range of RSI. The combination of price action, momentum indicators like RSI and Bollinger band clearly suggests that we can see a strong up move in HDFC over the next few days.

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